According to an AdAge article, during the past decade, the Hispanic $110,000-plus households grew 221% compared to 87% for total U.S. $100,000-plus households. This has increased the penetration of Hispanic households among the total $100,000-plus households in the U.S. from 3.7% to 6.5% during that time.
So, believe they are out there, but it is your job to go out and find them.
Here are some of the key tips shared during the council meeting:
1. Do it IN CULTURE: Understand the key affluent target. While Hispanic marketing tends to focus on the Mexican population which makes over 60% of the total U.S. Hispanics, when it comes to the affluent, a great percentage of them are concentrated in Miami and New York who are typically of South American and Caribbean decent. According to the Census Bureau, over 50 percent of Hispanic affluent are foreign born. 45 percent of affluent Hispanics live in five major metropolitan areas: Los Angeles, New York, Miami, Houston and Chicago. The economic and political issues in countries like Venezuela and Colombia have brought many immigrants to South Florida, and also in recent months Texas has seen an unprecedented influx of wealthy Mexicans settling in cities like Houston and San Antonio. Also keep in mind common truths about Latinos around cultural pride, the importance of family and a spirit of tenacidad are important emotional queues.
2. Do it IN CONTEXT: Speak with Relevancy. Relevancy refers to a company’s ability to properly contextualize its messaging and approach to successfully reach a target. Relevancy is key to identify the right partnerships, events and a primary audience. This is why a deeper understanding of the four key Latino Affluent sub-segments is critical to succeed. These can be summarized as: unacculturated immigrant small-business owners who earn over $750,000 a year in sales, bicultural immigrant entrepreneurs earning more than $150,000 a year, young educated immigrant professionals averaging over $175,000 a year, and older U.S.-born Hispanic businessmen averaging over $250,000 or more.
3. Do it in LANGUAGE: Beyond Soccer, Telenovelas and Spanish only. As mentioned above, the key sub-target calls for a different approach to messaging and media mix. While language tends to get minimized into a translation of an English tagline, this audience requires a level of sophistication in line with their level of education, aspirations and key drivers. For example, this past June Telemundo partnered with Giorgia Armani Beauty for an elegant event at the W in South Beach with celebrities and Armani’s makeup artist Tom Quinn, The event brought a glamorous sense of relevancy to their Club de Noveleras with top starts and the iconic participation of Armani as a partner. This was certainly an upscale take at bringing beauty, luxury and the passion for Telenovelas together with relevancy. From premium events like the Kentucky Derby to luxury publications like Ocean Drive en Español, brands must take into consideration how the message is constructed and most important, where it gets shared.
Will you boost your luxury business with Latinos? For the category and in times of economic trouble, this may be the only source of new business and incremental growth.